Paul & Jerri's Blog

Short sales - quick response!

Paul & Jerri Stracener (RE/MAX Associates Athens) — Wed, 02 Dec 2009 16:12:08 -0600

Treasury sets guidance to simplify "short sales"

Paul & Jerri Stracener (RE/MAX Associates Athens) — Tue, 01 Dec 2009 14:20:08 -0600

This is a part of an article just out today on requirements for banks to speed up the short sale process. When buyers are made to wait 2 or 3 months to find out if their offer will be accepted, it makes it difficult to hold out for the final approval. It looks like help is on the way...

NEW YORK (Reuters) - The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury's website.

Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.

The incentives, first announced in May, expand on the government's Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.

"While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve" or offer a modification, the Treasury said in its announcement.

Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower's credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.

But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings.

In one of the most contentious issues gumming up negotiations between lenders, the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from the first lender, seller, buyer or agent in exchange for releasing their claim, agents have said. Because primary lenders would face larger losses in a foreclosure, some subordinate lenders have felt empowered, the agents said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury program, if they felt the cap was too low, a Treasury official said in October.

"If there was a short sale program that didn't recognize the second lien holder position, it could have pretty damaging consequences for the industry," Sanjiv Das, chief executive officer of CitiMortgage, said in an interview last week.

Short Sales in Athens area

Paul & Jerri Stracener (RE/MAX Associates Athens) — Tue, 01 Dec 2009 13:08:23 -0600

We have several short sale properties available. To buy a short sale, a buyer must be pre-qualified for the loan and be in a position to wait a couple of months (hopefully it will be faster) to get final approval from the sellers lender. Since the bank will be taking a loss on the property, they make sure it is in their best interest to accept a short sale offer. They will order an appraisal (or BPO - broker price opinion) to verify the value of the home. Then, the request goes to several different levels for verification before being submitted to the investor for the final approval. If you have questions about any of these houses or about short sales in general, call me... 706-296-4395. To view other listings in the area, click here. For more information about the Athens area, click here.

Here are some of our short sale listings:

Auburn, 4BR/3BA plus office and game room. Great split foyer plan. Pergo flooring on main level, open floor plan with large great room, deck off breakfast area. Separate formal dining room. Great house -only 3 years old. Priced at $135,000!

High Ridge subidivision - 3 BR/2BA home with large eat-in kitchen, formal dining room, great room with fireplace, fenced back yard and a partial unfinished basement. Priced well below other homes in neighborhood at $184,000!

Oconee County 3BR/2BA home with huge sunroom, great room with fireplace, formal dining room. Off Hwy. 53 near Herman C. Michael Park. Great house at a great price $133,900!

Short sale in Athens

Paul & Jerri Stracener (RE/MAX Associates Athens) — Wed, 25 Nov 2009 06:19:40 -0600

High Ridge Subdivision homes typically sell for much more than this. Final approval must come from the lender, but this is a great deal!

3 bedrooms, 2-1/2 bath, large family room with fireplace, large kitchen with breakfast room, formal dining room, formal living room, hardwood floors, fence back yard and a partial unfinished basement. 2664 sq. ft. All this in a great neighborhood for $184,000!

Call Jerri at 706-296-4395 to see thos home, or click here for more photos and information.

Athens GA Real Estate Stats

Paul & Jerri Stracener (RE/MAX Associates Athens) — Sun, 15 Nov 2009 07:30:55 -0600

According to the Athens MLS, our sales are down 21% - 517 less homes sold this year than last year for the same period (through November 15). The prices are down almost 32% which confirms what we've been seeing... more demand for the lower priced homes. And, the good news for buyers is that there are plenty of sellers that need to sell their homes. We have all time low interest rates, the $8,000 first time buyer credit and a great inventory of homes... it's the perfect time to buy your first home.

Bank of America short sale approved!

Paul & Jerri Stracener (RE/MAX Associates Athens) — Tue, 10 Nov 2009 10:57:17 -0600

I have been working with Bank of America to negotiate short sales on several properties. In the past, I have gotten frustrated by the fact that I couldn't get an answer when I knew I had submitted everything they needed and worked hard to get the best offer possible.

They have taken 3-4 months to approve a short sale and in the meantime, I have lost many buyers that submitted offers thinking they would be able to close in 30-45 days. I guess the lack of communication has been the hardest thing in working with Bank of America.

However, this week has been different. I received approvals on 2 offers I submitted. both buyers had terminated their offers. I had backup offers on both properties but for less than the accepted offer. I had read on various forums that it would be at least 30 days to get the substitute offer approved. I submitted both and got approval on one of them in 2 days! Yes! I know Bank of America has been completely overloaded with this work but am very hopeful that they are starting a new trend now!

Short sales can be a great option for anyone who is facing foreclosure. It's also a good deal for a buyer that can take a little time to close. And, the banks typically net more than if they put the home in foreclosure. Everybody wins!

Thanks Bank of America!

Extension approved for first time homebuyers and existing homeowner/buyer credit

Paul & Jerri Stracener (RE/MAX Associates Athens) — Fri, 06 Nov 2009 12:08:55 -0600

NAR Frequently Asked Questions

Homebuyer Tax Credit Changes

National Association of REALTORS® Government Affairs Division

500 New Jersey Avenue, NW, Washington DC, 20001

Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit

Question: Existing homeowner credit: Must the new house cost more than the old house?

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who

meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a

new home. I have lived in my current home for more than 5 consecutive years and

am within the new income limits. I will go to settlement on November 20. If

President Obama has signed the bill by the time I go to settlement, will I qualify for

the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment

(when the bill is signed). There is no reference to the date of contract for the new credit. The

provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a firsttime

homebuyer but was not within the prior income limits at the time I

entered into my contract to purchase on October 30, 2009. I will be covered,

however, by the new income limits. If the new rules have been signed into law by the

time I go to settlement, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill.

The income limit and other eligibility rules will look to your status as of the date of purchase,

which is the settlement date. So if the new rules have been signed when you go to settlement,

you should be eligible for the credit (or a portion of the credit if you're within the phaseout

range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I

have found a home with a nonnegotiable

price of $825,000. Will I be able to use any

of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount

above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an

absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting

since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the

other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you

will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000

and lived there until 2008 when he got a divorce. Whether John has been renting or bought in

the interim, he WOULD INDEED be eligible for the credit because he owned a home and

occupied it as his principal residence for 5 consecutive years out of the last 8 years. The

keyword here is "consecutive." As long as he lived in that house for 5 years straight what he

did since 3 years doesn't impact eligibility.

Question: I am an eligible firsttime

homebuyer. I entered into a contract to purchase on

November 1, 2009. Do I have to go to closing before December 1? How does the

extension date affect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as

if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30

(or July 1, worst case), the purchaser will be eligible for the credit.

Senate approves extension of first time homebuyer's tax credit of $8,000

Paul & Jerri Stracener (RE/MAX Associates Athens) — Thu, 29 Oct 2009 08:08:11 -0500

According to MSNBC, the Senate has approved extension of the tax credit for first time homebuyers. This is good news for the real estate industry... and for first time homebuyers. There is a provision for a $6,500 tax credit for repeat buyers. I'm sure we'll hear more when the extension gets final approved.

RE/MAX mailings

Paul & Jerri Stracener (RE/MAX Associates Athens) — Mon, 26 Oct 2009 14:04:05 -0500

Today we received a RE/MAX brochure in the mail. It's a very nice mailing with information about investing, short sales and some of the new enhancements on REMAX.COM. REMAX.COM shows over 90% of all listings. And, RE/MAX has the most productive sales force in real estate. But, the thing that I appreciate most is the mention of the Certified Distressed Property Expert designation. RE/MAX has almost 60% of agents with the designation to help owners get a short sale processed most efficiently. If you or someone you knows needs help to avoid foreclosure, call me at 706-296-4395.

With the slower economy, most real estate franchises have cut back on advertising. RE/MAX is continuing to make new TV commercials and this latest mailing shows the corporate offices committment to supporting the RE/MAX agents. This year, there was a mailer for first time homebuyers (don't forget the $8,000 tax credit!) and one about investment opportunities.

How can we get short sales approved when Bank of America is so slow to respond?

Paul & Jerri Stracener (RE/MAX Associates Athens) — Sun, 25 Oct 2009 12:50:39 -0500

I am a Certified Distressed Property Expert and handle short sales for homeowners with a hardship that has caused them to be unable to pay their mortgage payments. I know this is a terrible stress for many and I am happy to be able to provide the service. There are many steps to a short sale that will make it move along quickly. I have the knowledge and am actively seeking homeowner that need my service to avoid foreclosure.

I am currently working on 4 short sales and 3 of them are with Bank of America. One of these properties was listed in November of 2008. We listed the home at a fair price and slowly reduced the price until we received an offer. Once I got the offer ready along with the 68 page package of information, it was sent in to Bank of America. I understand that the banks are not able to keep up with the number of short sale offers being submitted. However, after a year, you would think this could be worked out. I know Bank of America can process a new loan quickly. Couldn't the same processors be allowed to do some of the work on short sales? Even if it did have to go to a "final negotiator", at least the basic information could be verified by a local employee.

The process that's being used now is not working. An offer I received in March was terminated in June after the bank gave a counter offer that was $10,000 over the price the home was listed at at that time. I had documented all showings and price reductions and it was obvious that nobody was interested in buying the house at the higher price. Not this buyer either... then the negotiator asked if I could get $5,000 more. This buyer was not in the mood to negotiate after waiting 4 months with no communication from the lender.

I increased the list price by $10,000 more than the price at that time. Nothing... so, I started reducing the price. When it was back to the same price that had gotten offers last time, I got an offer. Actually, I ended up with one excellent offer and 2 back up offers that were also good offers. After 3 months, the first buyer terminated, then the 2 back up offerers increased their offers. After about 2 weeks, one of them terminated then a month after that, the 2nd one terminated.

During this process, I was checking with the bank every week to get an update on the status. I was getting nervous that I wouldn't have an offer when the bank decided to let me know if they would accept. I wouldn't dare tell them that the buyer had walked. Then they'd just close the file and I'd have to start over for the 3rd time. Luckily I now have 2 offers, both lower than the many that have terminated. And still no word from the bank, other than that I should hear something in the next 30 days.

To make it worse, I have managed to stop foreclosure twice on this property. However, every time, the foreclosure attorney sets it up for 2 months later. Then, when that time comes, I call Bank of America and they tell me it's not set for foreclosure. However, it's being advertised in the newspaper and the closing attorney says they have authorization from Bank of America to sell it. Monday, I can start requesting that the foreclosure be stopped -- they only allow me to start the process 5 days prior to foreclosure!

This house has been vacant for about 9 months and neighbors are calling me to get the grass cut, the property is showing many signs of neglect. One neighbor called to tell me that a tree fell from this property and hit his fence. I don't know how all this will work out in the end. The current homeowner has moved, has many health problems, has lost a signification source of income, and is unable to take care of anything associated with this home.

Some of the banks have been excellent to work with. If it wasn't in everyones best interest to do short sales, I would be able to understand. However, the average cost for a foreclosure is $30,000-$40,000. If we can get a home sold for $10,000-$20,000 under the current market price, that's got to be a better deal for everyone.

Benefit for the homeowner - no foreclosure, they can stay in the house until it sells, and a short sale is much less damaging on the credit report than a foreclosure.

Benefit for the lender - no foreclosure - they don't have to be reponsible for upkeep of property, don't have to go through the process of securing property, getting the propety in saleable condition and maintaining the property until it sells. Buyers see foreclosures as a better opportunity to get a great deal, usually making lower offers. Many times foreclosed properties have damage that can be very expensive to correct. If a buyer is getting an FHA loan, certain repairs must be made to qualify for the loan.

Even though it can be difficult to get a short sale approved, I will continue working on them. It is so rewarding to help an owner that feels like he's at the end of his rope. This can relieve a tremendous burden from a distressed owner.

Short Sale with RE/MAX

Paul & Jerri Stracener (RE/MAX Associates Athens) — Thu, 15 Oct 2009 09:10:18 -0500

We can help you work out a short sale with your mortgage company. In order to do this, there must be a verifiable hardship. This can be loss of job, reduction in income, divorce, illness, etc. Call Jerri to get the process started. 706-296-4395

Faster response on Bank of America Short Sales Offers!

Paul & Jerri Stracener (RE/MAX Associates Athens) — Tue, 06 Oct 2009 07:31:11 -0500

Bank of America is working with an outside company to get their short sale offers handled faster. This is great news! I have worked on several Bank of America short sales but recently lost one due to the slooow response to the offer. The buyer got tired of waiting and withdrew the offer before we could get a response from the bank. I know they are overwhelmed with requests for loan modifications and short sales but if they can't handle them, nobody wins.

I am very hopeful that this new development will make a big difference in processing short sales. It is to the benefit of everyone for the bank to accept reasonable offers on properties that are near foreclosure. There are definate rules for getting a home sold by short sale but if followed, this process can keep a homeowner from foreclosure and keep the loss for the lender to a minimum.

If you need help to determine if you are eligible for a short sale, call us.

Tax forgiven on primary residence short sale...

Paul & Jerri Stracener (RE/MAX Associates Athens) — Mon, 21 Sep 2009 13:49:59 -0500

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home's value or the taxpayer's financial condition.

more information on this at http://www.irs.gov/individuals/article/0,,id=179414,00.htm

Foreclosure rates where you live...

Paul & Jerri Stracener (RE/MAX Associates Athens) — Thu, 10 Sep 2009 17:02:36 -0500

Here is a link to a very interesting site from NPR regarding foreclosure rates in all parts of the country. You can see every county and the number of foreclosures in each area.

http://www.npr.org/templates/story/story.php?storyId=111494514

The map comes from Realty Trac.

Athens Foreclosure Search...

Paul & Jerri Stracener (RE/MAX Associates Athens) — Sat, 29 Aug 2009 18:46:11 -0500

Helping Homeowners Facing Foreclosure in Athens Area

Paul & Jerri Stracener (RE/MAX Associates Athens) — Fri, 28 Aug 2009 16:45:21 -0500

Local Real Estate Agent Earns Professional Designation to Help Homeowners Facing Foreclosure

Athens, GA - RE/MAX Associate Jerri Stracener, Associate Broker of RE/MAX Associates - Athens in, Athens, GA, has earned the prestigious Certified Distressed Property Expert (CDPE) designation after completing extensive training designed to assist homeowners facing foreclosures and to help home buyers in purchasing a distressed property.

"Jerri's dedication in earning the CDPE designation demonstrates her willingness to not only help troubled homeowners in the Athens area, but it shows a commitment to help the community recover from this recession," said Faye Kemp, Broker. "Seasoned real estate agents like Jerri, and nearly 7,500 RE/MAX Associates who are already CDPE certified, know that specific training is essential in helping families buy and sell homes."

Athens has seen its fair share of foreclosures - over 200 were reported in August according to local newspaper foreclosure listings. According to the National Association of Realtors® (NAR), more than 45 percent of U.S. existing home sales in the fourth quarter of 2008 were foreclosures and short sales. In a short sale transaction, a lender allows the homeowner to sell their property for less than the mortgage amount, to avoid the foreclosure process.

"In this market, more than ever before, home buyers and sellers appreciate working with a professional real estate agent who is qualified and trained to navigate through the short sale and foreclosure process," said Stracener, who has more than 15 years of experience in the real estate business. "I'm excited to use the knowledge gained through this course to help Athens families stay in their homes."

The Distressed Property Institute, based in Boca Raton, FL, offers the CDPE designation and was founded by dynamic real estate veteran Alex Charfen. In March, RE/MAX Chairman and Co-Founder, Dave Liniger, encouraged all real estate agents to obtain the CDPE designation. In less than sixty days, nearly 5,000 RE/MAX agents took the two-day course. There are more real estate agents from RE/MAX with the CDPE designation than from any other real estate company.

For more information on the Distressed Property Institute and CDPE, visit www.StopForeclosureAthens.com. To contact Jerri Stracener or to look for properties available in and around Athens, visit www.MovingToAthens.com .

Contact: Jerri Stracener, 706-296-4395 or jerri@movingtoathens.com

$8,000 Tax Credit for First-time Homebuyers

Paul & Jerri Stracener (RE/MAX Associates Athens) — Thu, 20 Aug 2009 06:43:18 -0500

I posted a link to the form for the tax credit but this link to the IRS site explains how it works. http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Deadline is coming up soon... December 1.

Square One Full Moon Party!

Paul & Jerri Stracener (RE/MAX Associates Athens) — Mon, 03 Aug 2009 12:06:29 -0500

Square One, the new seafood restaurant next to the Classic Center in Athens, is having a Full Moon Party on Thursday August 6, starting at 6:00. It's a pig roast on the patio. There will be music and great food, I'm sure. Maybe we'll see you there...

Don't miss the $8,000 federal tax credit... plus $1,800 credit from the State of Georgia!

Paul & Jerri Stracener (RE/MAX Associates Athens) — Wed, 29 Jul 2009 08:39:45 -0500

TIME IS RUNNING OUT...

Don't miss the great opportunity to get money back when you purchase a home. The $8,000 tax credit for first time homebuyers ends on December 1. The sale must close prior to December 1, which means you should be "under contract" to purchase a home by October 15. The loan process could be completed faster than 6 weeks but just to be certain, it's best to plan ahead.

There are requirements that must be met to qualify. They include not owning a home for the past 3 years, maximum annual income of $95,000 ($170,000 for a couple), and the credit is 10% of the home purchase with a maximum of $8,000. Here is the IRS form with instructions -

http://www.irs.gov/pub/irs-pdf/f5405.pdf

There is another tax credit available from the State of Georgia. This one is for $1,800, split over the next 3 years ($600 per year) and only applies to forclosed properties.

House Bill 261 gives a credit of either $1,800 or 1.2 percent of the purchase price, whichever is less. (You can only claim one-third of the credit each year, beginning with your 2009 Georgia tax return.) The purpose of the bill is to create a stimulus for home sales, and give a boost to the Georgia real estate market.

Here is how the Georgia Homebuyer Tax Credit applies to home purchases:

Applies to single-family homes and condos if they are your primary residence
The property must have been for sale prior to May 11, 2009 and must still be for sale
The property must be in default on or before March 1, 2009
The property has already been foreclosed on and is held by the bank or mortgage company

Homes purchased between June 1 and November 30, 2009 that meet the criteria will be eligible for the tax credit.

http://gov.georgia.gov/00/press/detail/0,2668,78006749_139486062_140354876,00.html

Stop Foreclosure Athens

Paul & Jerri Stracener (RE/MAX Associates Athens) — Sat, 25 Jul 2009 12:07:38 -0500

For information on stopping foreclosure , check out our new website www.StopForeclosureAthens.com It is a site designed by the Distressed Property Institute to explain how to qualify for a loan modification, short sale or deed-in-lieu and other options that may be available to you.

I obtained the CDPE designation a couple of months ago and have been busy helping people buy and sell homes through short sales. If you are facing foreclosure, the advantages of working with an experienced agent will be evident right away. With the support of the Certified Distresses Property Expert course, we have the forms, systems and knowledge to process short sales efficiently.

Some banks are slower but we have gotten short sale approval in as little as 3 weeks. Check out the new webiste and let us know if you have questions. If you or someone you know needs help to avoid foreclosure, call us.

Family avoids foreclosure with short sale

Paul & Jerri Stracener (RE/MAX Associates Athens) — Sun, 12 Jul 2009 11:08:26 -0500

Mr. Merca of Bethlehem decided to help his daughter buy a home in 2006. He got a 80% loan with a 20% second to cover the down payment and avoid the additional cost of Private Mortgage Insurance. His daugher and her husband made the montlhly payments, and loved their new home. It was a great place for their two children and they became friends with other families in the neighborhood.

All was well until the couple lost their jobs in December 2008. They didn't know what to do. It was so important for her to save her father's credit, yet they had no money to continue making the monthly payments. She did a lot of research and found out that help would be available to them through the East Athens Housing Authority. They offer counseling for HUD including loan modification or to determine the best option to avoid foreclosure.

In this case, there was no income and no assets to fall back on. The daughter was told to put the house up for a short sale. This was necessary since her father had paid $165,000 for the home and the house next door (HUD foreclosure) had recently sold for $110,000. Angie Wilkinson of East Athens Housing Authority referred her to me.

The process was a little slow to start. They were not sure if I would be able to help them or if they could trust me. It took about 3 weeks for me to get all documents that I needed. The problem was that the father didn't speak English so I was relying on his daughter to take the forms to him and get them signed. I had to have proof that he could not make the mortgage payments, which included getting copies of his tax returns, bank statements and pay stubs.

After the home was listed, the daughter got nervous that it would sell. She didn't know where they would go and didn't want to move the children from the home. Fortunately, she was more concerned about saving her fathers credit. We had several showings and had to reduce the list price from the original price several times. Finally, we received an offer and I submitted it to the 1st and 2nd mortgage holders.

The buyer was a first time buyer and didn't understand the process. She started to get nervous when we didn't hear from the mortgage company after about 3 weeks. I was calling weekly but couldn't get any response. Then, after 4 weeks, on May 26, I received a call that it was approved. I had to quickly negotiate with the 2nd mortgage company to get them to accept the offer from the 1st. We got approval from the 2nd mortgage holder on May 27 so we were ready to close.

The real shake up came when I was informed by the 1st mortgage company that they would not stop the foreclosure! We only had 5 days until the home would be "sold on the courthouse steps"! And, the buyer had not even started the loan process. She had gotten a "pre-approval" but nothing had been done to get the loan closed. She was ready to give up.

Fortunately, she was willing to switch lenders after I told her agent about a mortgage consultant that I work with a lot. Her name is Judy Adams with Bank of America. She is very dedicated and will work as hard as needed to get a loan closed. Everything fell into place... Judy met with the buyer until 10pm that night and submitted the loan to be processed. At 8:30 the next morning, I had a call from an appraiser to set up the appraisal inspection. We switched the closing to Athens attorneys, Quarterman & Hodson, and they were able to get the title work completed in record time.

The buyer had excellent credit so it was easy getting her approved. It was just amazing that it could all happen in such a short time. The last little surprise was that we had to close on Friday, May 29 before 2:00. The loan had to be paid off to avoid the foreclosure sale, which was scheduled for Tuesday, June 2. We closed 3 days after we got approval on the short sale.

The daughter of the owner was so relieved that her father will not have a foreclosure on his credit. The effects of a short sale can be corrected with two years of on time payments. It takes 5-7 years to get a foreclosure off of the credit report. And the family was able to find a much less expensive house to rent until they can get back on their feet, save money for a down payment and buy their own house.

Square One Seafood Restaurant in Athens

Paul & Jerri Stracener (RE/MAX Associates Athens) — Thu, 18 Jun 2009 10:14:59 -0500

We have been to Square One several times and every time has been wonderful! They have a terrific location, next to the Classic Center on Thomas Street in Athens.

There is outdoor and indoor seating. We always eat in the kitchen area because we enjoy watching the cooks preparing the meals. They are very efficient and one of the owners, Joe, is there checking every dish before it goes out to the customer.

The owners came here from Florida after successfully running a seafood restaurant there for 16 years. They turned that operation over to a manager and moved to Athens. It seems that several of the employees moved here with them. In my opinion, that says a lot about how the restaurant operates -- and its owners.

I may not have the story exactly right, but I do know that the food is delicious! Last night, I had the trout special. It was served with slightly spicy grits and steamed vegetables. Paul had another special that was just seafood (shrimp, scallops, swordfish) with a white wine sauce, served over a rice cake. I didn't try it because I was very happy with my trout but, he loved it.

On our last visit, we overheard a customer saying that he's been in Athens for 30 years and we've never had a good seafood restaurant, until now! This restaurant seems to have a steady flow of traffic every night, even during the summer months! Even though they always have plenty of customers, most times you will be seated right away. I'm pretty sure they take reservations too.

If you get the opportunity, try it. You won't be disappointed.

Short sale listings in Oconee County

Paul & Jerri Stracener (RE/MAX Associates Athens) — Tue, 09 Jun 2009 19:54:24 -0500

We have a home listed for sale in Oconee County that will be sold as a short sale. It is on Laurel Chase Run in Bishop and has 3 bedrooms, 2 baths and a large sunroom with ceramic tile floors. There is an eat-in kitchen and nice family room with masonry fireplace. There is a 2 car garage. The lot is very private with most of the space in the front yard. This home has masonite siding and is listed for $140,000.

We also have a brick 2 story home listed for sale. This one will be sold as a short sale too. It has a large eat-in kitchen, family room with fireplace, master bedroom on the main level plus 2 bedrooms upstairs. The garage has been enclosed with 3 additional rooms. There is a large fenced in back yard, nice shop building with electricity and water. The house is convenient to Hwy. 78 and the Oconee Connector and Hwy. 316. It is in Fieldstone Subdivision. This home is listed for $125,000.

$8000 tax credit to be used for down payment...

Paul & Jerri Stracener (RE/MAX Associates Athens) — Fri, 22 May 2009 21:37:56 -0500

This article from the Washington Post today...

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/22/AR2009052201483.html

If home buyers are given a bridge loan to use as a down payment, this will certainly help many first time buyers be able to buy a home.

Foreclosure vs. Short Sale -- Homeowner Consequences

Paul & Jerri Stracener (RE/MAX Associates Athens) — Mon, 04 May 2009 15:54:58 -0500

Here is an summary of the consequences of foreclosure, deed in lieu and short sale:

BUYING A HOUSE: A homeowner who loses a home to Foreclosure is inelegible for a Fannie Mae backed mortgage for a period of 5 years. A homeowner who successfully negotiates and closes a short sale will be elegible for a Fannie Mae backed mortgage after only 2 years.

INVESTOR: An investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

APPLYING FOR A LOAN: On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 taht asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? This will affect future rates. There is no similar declaration or question regarding a short sale.

CREDIT SCORE: Credit Score after Foreclosure may be lowered anywhere from 250 to over 300 points. Typically this will affect score for over 3 years. Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sales affect can be as brief as 12 to 18 months.

FORECLOSURE VS. SHORT SALE: Foreclosure will remain as a public record on a person's credit history for 10 years or more. Short sale is not reported on a credit history. There is no specific reporting item for 'short sale'. The loan is typically reported 'paid in full, settled'.

If you're behind on your mortgage payments, call us. We can help you decide to what to do. You may be able to negotiatiate loan modification, refinancing your loan or processing a short sale. Whatever you do, don't ignore the problem. We can help but the process takes some time. Call Jerri 706-296-4395.